Is Brazil on Pace to Harvest 100M Tons of Soybeans this Season?
The soybean harvest is just beginning in Brazil, and despite dry and hot weather conditions in the top producing state of Mato Grosso, analysts believe that the country has the potential to hit a harvest of 100 million tons this season.
Soybean-sown acreage in the country is up 4% year on year, and given the possibility of above average yields, the U.S. Department of Agriculture (USDA) forecasts that the crop could surpass the 96.2 million tons harvested in 2014/15.
Historically second to the U.S. for soybean production, Brazil’s crop this year is expected to be 15% larger than two years ago, placing Brazil in the position of being set to far exceed the U.S. for soybean exports. Additionally, the weak real is giving Brazil a market advantage that is expected to boost its soybean exports by 13%, with the possibility that it could ship 11 million more tons of soybeans that the U.S., which is expected to see its export volumes contract.